Negative economic reports from Europe and positive US data pushed the euro to a fresh nine-year low on Thursday for a fifth day of losses as diverging monetary policies continued to bolster the greenback. The European Central Bank meets on January 22 when investors expect it to finally launch a program of government bond buying with new money, a policy known as quantitative easing.
That contrasts with a Federal Reserve poised to start tightening US policy, in effect limiting the availability of cheap funding, as the economy looks to be on firmer footing. The euro fell to $1.17540, its lowest since December 2005, on the EBS trading platform. Traders cited option barriers at $1.1750. The dollar climbed to 119.97 yen, pulling away from Tuesday's three-week trough just above 118 yen. It last traded around 119.70 yen, up 0.38 percent on the day. Weakness in the euro kept the dollar index at nine-year highs. It hit a peak of 92.528 before drifting down to 92.209, a gain of 0.35 percent.
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